The Bravia TV maker's shares rose as much as 6.9 percent inTokyo after the report. The company declined to comment.

Sony, which last year sold its chemical business to thegovernment fund, Innovation Network Corp of Japan (INCJ), for$700 million, is trying to revive the fortunes of its consumerelectronics business by focusing on cameras, gaming and mobiledevices.

Sony's CEO, Kazuo Hirai, speaking at the CES consumerelectronics show in Las Vegas this month, said any unit notcontributing to those core divisions or helping to end losses intelevisions could be sold. Under the company's accounting rules,asset sales are booked as operating profit.

The INCJ has offered to invest in any firm created bymerging Sony's battery division with the Nissan-NEC venture, theYomiuri said. It is also looking for other potential Japanesebuyers, the paper added, citing unidentified sources familiarwith the matter.

Founded as a joint venture with Union Carbide Corp in 1975 and later made a fully-owned unit, SonyEnergy Devices Corp was a pioneer in making lithium-ionbatteries for computers and mobile devices.

Sony, however, which decided not to enter the more lucrativebusiness for automotive batteries, has struggled againstprice-cutting South Korean rivals in a market worth $18 billiona year. The unit, which has three factories in Japan and twooverseas assembly plants in China and Singapore, has assetsvalued by Sony at $578 million.